NYSE$SPB

Spectrum Brands Holdings Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported third quarter fiscal year 2022 results, showing net sales increase and strategic progress in business transformation.

Spectrum Brands Holdings reported a 10.0% increase in net sales and a 4.4% increase in organic net sales for the third quarter of fiscal 2022. The company is progressing with the sale of its HHI business and the separation of its Home & Personal Appliances business. However, adjusted EBITDA declined due to lower volume, unfavorable foreign exchange impact, and higher transaction and restructuring costs.

  • Net sales increased by 10.0%, with organic net sales up by 4.4%.
  • Net income from continuing operations was $3.0 million.
  • Adjusted EBITDA decreased to $80.1 million.
  • The company is focused on reducing inventory levels and maximizing cash flow.

Headline financials

Total Revenue

$818M

Previous: $1.16B-29.7%
EPS (adj)

$0.54

Previous: $1.57-65.6%
Adjusted EBITDA

$80.1M

Previous: $167M-52.2%
Capital Expenditures

-$45.3M

Previous: -$43.3M-4.6%
Free Cash Flow

-$12.6M

Previous: -$12.6M+0.0%
Net Income

$32.7M

Previous: $30.7M+6.5%
Operating Income

$38.7M

Previous: $98M-60.5%
Gross Profit

$276M

Previous: $407M-32.3%
Cash & Equivalents

$248M

Previous: $130M+90.2%
Total Assets

$6.01B

Previous: $5.42B+10.8%
Stock-Based Comp

-$800K

Previous: $7.7M-110.4%

Revenue & EPS history

Spectrum Brands · Revenue · Quarterly

$818M

Q3 2022-29.7%vs Q3 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Spectrum Brands · $818M total across 3 segments · Q3 2022

  • Home & Personal Care
    $329M+20.0%
  • Global Pet Care
    $290M+12.8%
  • Home & Garden
    $199M-6.4%

Forward guidance

Spectrum Brands expects mid-single digit top-line growth with a mid-twenties EBITDA decline for fiscal year 2022. The company maintains a long-term net leverage target ratio of 2.0 - 2.5 times after deploying HHI proceeds.

Tailwinds

  • Expected mid-single digit top-line growth.
  • Focus on maximizing cash flow.
  • Long-term net leverage target ratio of 2.0 - 2.5 times.
  • Confident in closing HHI sale to ASSA ABLOY.
  • Businesses remain competitively positioned.

Headwinds

  • Expected mid-twenties EBITDA decline for fiscal year 2022.
  • Challenging customer dynamics.
  • Reduced foot traffic in home center channels.
  • Higher inventory levels.
  • Unfavorable weather conditions in the Home & Garden business.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+0.8%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+2.1%

Avg return

30 days after

63%

40 / 64 earnings

Positive

+18.1%

Q4 2019

Best reaction

-26.0%

Q2 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-7.8%-5.3%-4.2%
Q1 2026+10.2%+8.9%+11.8%
Q4 2025+10.0%+2.0%+15.2%
Q2 2025+3.8%+8.4%-9.7%
Q1 2025-7.7%-7.7%-9.2%
Q4 2024-3.9%-5.3%-3.6%
Q3 2024+7.4%+9.1%+12.6%
Q2 2024+12.2%+11.8%+6.9%
Q1 2024+7.4%+6.2%+4.4%
Q4 2023-14.0%-14.6%+3.3%
Q3 2023+4.7%+2.7%+8.8%
Q2 2023+2.7%+0.7%+3.4%
Q1 2023+1.2%+2.7%-7.9%
Q4 2022-2.7%+0.3%+16.7%
Q3 2022+1.2%-3.0%-12.9%
Q2 2022+7.2%+4.0%+4.6%
Q1 2022-0.8%+3.3%-0.4%
Q4 2021+11.4%+12.4%+3.8%
Q3 2021-1.9%-1.9%-5.3%
Q2 2021+3.7%-1.6%-5.8%
Q1 2021+3.2%+1.7%+0.3%
Q4 2020+2.3%+2.7%+9.9%
Q3 2020+8.6%+6.7%+13.0%
Q2 2020-2.4%-0.7%+10.3%
Q1 2020-0.6%-4.3%-12.7%
Q4 2019+18.1%+21.3%+20.3%
Q3 2019+9.0%+6.4%+19.6%
Q2 2019+4.8%-0.0%-7.4%
Q1 2019-18.4%-14.4%-3.3%
Q4 2018-17.0%-13.4%-26.8%
Q3 2018+13.7%+13.7%+18.4%
Q2 2018-26.0%-21.9%-15.1%
Q1 2018-3.9%-7.4%-9.8%
Q4 2017+12.8%+16.7%+15.8%
Q3 2017-3.5%-3.6%-9.3%
Q2 2017-9.8%-8.9%-2.7%
Q1 2017+6.7%+4.5%+14.0%
Q4 2016-1.0%+3.8%+1.3%
Q3 2016+7.0%+7.3%+15.4%
Q2 2016+2.0%
Q1 2016+0.9%
Q4 2015+3.6%
Q3 2015-2.9%
Q2 2015+1.0%
Q1 2015+3.8%
Q4 2014-3.1%
Q3 2014+0.2%
Q2 2014-0.6%
Q1 2014+5.1%
Q4 2013+4.0%
Q3 2013+3.7%
Q2 2013-1.6%
Q1 2013+0.1%
Q4 2011-3.4%
Q4 2012-10.8%
Q3 2012+0.0%
Q2 2012+1.0%
Q1 2011+0.6%
Q1 2012+2.0%
Q2 2011+0.7%
Q4 2010+0.3%
Q3 2011+0.3%
Q3 2010+1.6%
Q2 2010-4.2%

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